What Is the UFOX ETF? A Complete Guide to Returns, Expense Ratio, Holdings and Alternative ETFs
This ETF invests in next-generation connectivity infrastructure companies built on 5G, 6G and satellite communications, seeking to capture growth in the space economy and the AI connectivity ecosystem.
SubscribeWhat Is This ETF?
It tracks the BlueStar® Connective Technologies Index™ and holds about 60 companies building 5G/6G networks, satellite internet and AI-driven connectivity infrastructure.
Going beyond conventional telecom carriers, it suits aggressive tech investors who want exposure to the innovative growth of satellite technology and next-generation communications hardware.
Launched by Defiance in 2019, it is a passive (index-tracking) ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | BlueStar® Connective Technologies Index™ |
| Management Style | Passive (index-tracking) |
| Investment Focus | 5G/6G infrastructure, satellite communications, AI hardware |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.30% |
It uses an adjusted market-cap weighting method to moderate the weight of individual holdings, and selects the core hardware and service companies driving global connectivity innovation. It aims for multi-layered infrastructure exposure that spans ground-based base stations to low-Earth-orbit satellite networks.
- Scalability that extends beyond 5G to satellite and space communications networks
- A balanced mix of networking hardware and AI semiconductor companies
Size and Costs
Assets under management (AUM) stand at $798.6M, and the total expense ratio is 0.30% per year.
While existing 5G infrastructure ETFs have concentrated on terrestrial networks, UFOX has recently increased its weighting in satellite communications and the space industry, quickly reflecting changes in the next-generation communications market.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeRising demand for data center connectivity driven by the AI boom and the expansion of the privately led space industry have created a favorable thematic backdrop. As the pace of technological innovation accelerates, market interest in related infrastructure companies is growing.
The race to establish next-generation communications standards and expectations for the commercialization of satellite internet are the main drivers of inflows, and flows tend to rebound sharply when sentiment toward tech stocks as a whole recovers.
Strengths and Weaknesses
The fund concentrates on next-generation communications and space infrastructure with high growth potential, but investors should be mindful of significant technological uncertainty and volatility.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
If you want broad tech exposure, QQQ can be an alternative, and if you want to focus more on semiconductors, you could consider SOXX. For investment specialized solely in the satellite and space industry, there is UFO, and if you want stable dividends centered on telecom carriers, VOX or IYZ are comparable options.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VGT | Vanguard Information Technology ETF | $119.17 | +0.5% | $146.8B | 0.09% | 0.4% | +25.1% |
 XLK | State Street Technology Select Sector SPDR ETF | $183.23 | +0.5% | $120.1B | 0.08% | 0.46% | +26.8% |
 XLF | State Street Financial Select Sector SPDR ETF | $55.90 | -1.3% | $52.6B | 0.08% | 1.48% | +6.4% |
 XLV | State Street Health Care Select Sector SPDR ETF | $179.28 | -1.1% | $47.7B | 0.08% | 1.42% | +22.8% |
 XLE | State Street Energy Select Sector SPDR ETF | $69.33 | +2.6% | $44.8B | 0.08% | 2.2% | +55.9% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 MXL | MaxLinear Inc | 0.06% | $63.46 | -2.8% | $5.8B | - | - |
| SPCX | Space Exploration Technologies Corp | 0.05% | $147.49 | +1.9% | $1.98T | - | - |
| AAPL | Apple Inc | 0.09% | $347.73 | -0.1% | $5.07T | 39.9 | 0.32% |
| RKLB | Rocket Lab Corp | 0.09% | $52.60 | +2.7% | $31.5B | - | - |
 ASTS | AST SpaceMobile Inc | 0.05% | $39.79 | +2.6% | $15.5B | - | - |
| NVDA | NVIDIA Corp | 0.05% | $210.96 | -0.6% | $5.08T | 26.7 | 0.37% |
| AVGO | Broadcom Inc | 0.08% | $321.68 | -0.5% | $1.54T | 41.1 | 0.81% |
Investor Checkpoints
Investing in UFOX is a process of selecting the companies likely to become the main players in the future infrastructure connecting the world. Before investing, please check the validity of the theme using the following points.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📡 Satellite Communications Commercialization | Check the growth of satellite internet services such as Starlink | Accelerating |
| 💵 Expense Ratio | Check the cost advantage versus other thematic tech ETFs | Relatively low |
| ⚙️ Hardware Demand | Component demand from data center and network upgrades | Favorable |
| 🚀 Space Economy | Scalability of the privately led space industry and the regulatory environment | Early growth stage |
By the nature of thematic stocks, short-term volatility can be extreme depending on specific news or policy changes. Investors should recognize that this structure suits those who believe in a long-term shift in the technology paradigm.
It is a specialized thematic product that invests in the core hardware of next-generation communications technology connecting the ground and space. It has high utility as a strategic asset for strengthening the growth momentum of a portfolio.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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